Rabu, 03 Agustus 2011

We had highlighted that the end of aggressive price competition in the telco space since the beginning of the year would be positive for all players in the industry. With revenue recovery on its way, the cheap valuation of the telco sector should not be seen as a value trap any longer, in our view. We like TLKM on its share buyback plan (Rp5.0 tn allocation, ~3% repurchases, target minimum price of Rp7,200/share), which should provide some support to the stock price in the market.